Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Caesars Operating Request Time Extension In Bankruptcy Case
Author: Joel R. Glucksman
Date: May 15, 2015
Key Contacts
Back
The operating unit of Caesars Entertainment Corp., Caesars Operating, request additional time so the company can file its own Chapter 11 reorganization plan without having to worry about rival agendas.
The branch garnered a substantial amount of attention when the group chose to file for Chapter 11 bankruptcy protection earlier in 2015.
Exclusive period ends in May
Under current bankruptcy law, Caesars Operating has an exclusive period to file a Ch. 11 plan. This “exclusive” period ends May 15th, according to The Wall Street Journal.
As of Wednesday, April 16th, Caesars Operating requests that the U.S. Bankruptcy Court in Chicago extend its exclusivity period, giving it until Nov. 15th to file its reorganization plan and up to Jan. 15th, 2016, to solicit votes on any such proposal that is filed, the media outlet reported.
In the filing, Caesars Operating emphasized the complex nature of its bankruptcy case, which involves several casinos. Currently, the company is seeking to restructure $18 billion in debt. While the firm already filed a reorganization plan, the matter has been complicated due to the existence of an independent examiner probing several transactions made before the CEO filed for bankruptcy protection.
Independent examiner
Last month, a U.S. bankruptcy judge ordered an independent examiner to investigate the aforementioned transactions after creditors claimed that Caesars Operating transferred some of its most valuable properties and casinos to the operating unit’s parent company, Reuters reported.
Caesars Operating agreed that an independent examiner was needed, but made an effort to give the individual in this position a smaller scope than what any of the company’s creditors were requesting, according to the news source.
The nature of several transactions has been disputed, including Caesars Operating flipping its interest in online gambling businesses in 2011, to the 2013 transfer of Las Vegas’ Octavius Tower and more recently, the 2014 transfers of several Las Vegas casinos.
As the independent examiner looks into these deals, most parties do not want to decide on the current proposal until the report is finished, according to The Wall Street Journal. Caesars Operating stated in their filing the current probe could last around six months.
“These cases are in their early stages and numerous outstanding contingencies could have a significant impact on the terms of the plan or a new plan proposed by the debtors,” the news source reported.
Amid all these concerns, a hearing on the matter has been scheduled for April 29th, according to The Wall Street Journal.
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know
For many years, the New Jersey Mansion Tax has been a significant consideration in high-value real estate transactions. Recent legislative changes, however, have substantially altered how the tax operates, including who is responsible for paying it and the amount owed in certain transactions. Whether you are purchasing, selling, or investing in New Jersey real estate, […]
Author: George McGowan
Estate Planning for Digital Assets Under New Jersey Law
As our personal and financial lives increasingly move online, estate planning must evolve to address a new category of property: digital assets. From email accounts and social media profiles to cryptocurrency and cloud-stored business records, these assets often carry both financial and sentimental value. Yet, without proper planning, they can become inaccessible—or even lost—upon incapacity […]
Author: Marc J. Comer
The Role of Representation and Warranty Insurance in M&A Transactions
In today’s mergers and acquisitions market, representation and warranty (R&W) insurance has become a common feature of deal negotiations. Once used primarily in larger transactions, R&W insurance is now frequently incorporated into middle-market deals as buyers and sellers look for efficient ways to allocate risk and close deals. When structured properly, R&W insurance can help […]
Author: George McGowan
You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?
Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]
Author: George McGowan
Why Every Business Should Conduct an Annual Insurance Coverage Review
Most New Jersey business owners purchase insurance policies, file them away, and assume they are protected if a claim arises. Without a regular insurance coverage review, many companies discover gaps only after a lawsuit, cyberattack, property loss, or other significant event occurs. An annual insurance coverage review can help businesses identify potential risks, ensure their […]
Author: George McGowan
Demand Letters & Cease and Desist Letters: When to Send One (and When Not To)
Businesses and individuals often encounter situations where another party breaches a contract, fails to pay a debt, or continues harmful conduct. In many such disputes, a precisely drafted demand letter or cease-and-desist letter serves as a powerful legal tool. It can frequently resolve the dispute and avoid litigation. While demand or cease-and-desist letters can resolve […]
Author: George McGowan
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.